Taiwan’s housing transactions fell last month from one month earlier, as global financial market turmoil dampened investor confidence, major real-estate agencies said.
Sinyi Realty Inc (信義房屋), the nation’s only listed real estate broker, saw its sales drop 8 percent in Taipei City and 13 percent in New Taipei City last month, from August, the company said in a statement.
Stanley Su (蘇啟榮), head of Sinyi’s research department, said the decline was mainly the result of equity corrections across global bourses last month, during which the TAIEX shed 6.67 percent, or 515.98 points, to finish at 7,225.38 at the close of trade on Friday.
Foreign investors slashed NT$78.68 billion (US$2.58 billion) in net local shares last month, after cutting NT$190.35 billion net holdings one month earlier, Taiwan Stock Exchange data indicated.
Houses priced at NT$20 million or lower accounted for 75 percent of Sinyi’s transactions as people favored cash over aggressive real -estate investments amid growing economic uncertainty, Su said.
The cautious sentiment drove up inquiries for two-bedroom apartments valued at between NT$12 million and NT$22 million among first-time home buyers, Su said.
Prices were likely to remain flat or fall slightly on a negative wealth effect in the coming months, he said, while young married couples and people intent on tying the knot would support the market.
Taiwanese like to get married toward the end of the year and home purchases are considered important in building families.
H&B Realty Co (住商不動產), the nation’s largest real-estate broker by number of franchises, reported a 5 percent fall in housing transactions last month, with the Greater Taipei area accounting for most of that, the broker said in a statement.
“More and more people share the view that cash is king after the global bourses tumbled last month,” Hsu said. “The strengthening US dollar is luring global capital away from emerging markets, including Taiwan, leaving real -estate assets less attractive.”
Hsu, who had previously expected the housing market to bounce back this quarter, now holds a neutral view.
The return of unpaid leave at science-based parks in Hsinchu and Taichung is also likely to weaken home sales in those areas, where transactions have so far been less affected by the introduction of a luxury tax in June because of their relative affordability, Hsu said.
Low-priced units near public transportation will be the mainstay in the coming months, while inquiries about upscale housing are likely to turn sluggish, she said.
Evertrust Rehouse Co (永慶房屋), the nation’s largest real-estate broker by number of outlets, said transactions remained unchanged in last month from August as customers regained some of their confidence, following auctions of commercial properties over the last two weeks that drew record offers.
However, overall sales at Evertrust lagged behind the January level by 30 percent after reports that the luxury tax was starting to impact sales in February, Everstrust associate manager Jeffery Huang (黃增福) said.
The market is unlikely to recover fully until the eurozone shows signs of stabilization from its debt crisis, Huang said.
NOT JUSTIFIED: The bank’s governor said there would only be a rate cut if inflation falls below 1.5% and economic conditions deteriorate, which have not been detected The central bank yesterday kept its key interest rates unchanged for a fifth consecutive quarter, aligning with market expectations, while slightly lowering its inflation outlook amid signs of cooling price pressures. The move came after the US Federal Reserve held rates steady overnight, despite pressure from US President Donald Trump to cut borrowing costs. Central bank board members unanimously voted to maintain the discount rate at 2 percent, the secured loan rate at 2.375 percent and the overnight lending rate at 4.25 percent. “We consider the policy decision appropriate, although it suggests tightening leaning after factoring in slackening inflation and stable GDP growth,”
DIVIDED VIEWS: Although the Fed agreed on holding rates steady, some officials see no rate cuts for this year, while 10 policymakers foresee two or more cuts There are a lot of unknowns about the outlook for the economy and interest rates, but US Federal Reserve Chair Jerome Powell signaled at least one thing seems certain: Higher prices are coming. Fed policymakers voted unanimously to hold interest rates steady at a range of 4.25 percent to 4.50 percent for a fourth straight meeting on Wednesday, as they await clarity on whether tariffs would leave a one-time or more lasting mark on inflation. Powell said it is still unclear how much of the bill would fall on the shoulders of consumers, but he expects to learn more about tariffs
Greek tourism student Katerina quit within a month of starting work at a five-star hotel in Halkidiki, one of the country’s top destinations, because she said conditions were so dire. Beyond the bad pay, the 22-year-old said that her working and living conditions were “miserable and unacceptable.” Millions holiday in Greece every year, but its vital tourism industry is finding it harder and harder to recruit Greeks to look after them. “I was asked to work in any department of the hotel where there was a need, from service to cleaning,” said Katerina, a tourism and marketing student, who would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01
RSS